A life insurance term plan is a crucial part of any financial plan, but a one-size-fits-all approach might not be ideal. They offer valuable protection for a specific period, but what if your needs change over time? Can you tailor a term plan to fit your unique circumstances?
The answer is yes! In this blog, we’ll explore the various features and add-ons of customisable term insurance plans. Whether you’re a young professional, starting a family or an established individual nearing retirement, let’s help you understand how you can customise the existing policy and convert it into the best term insurance plan for optimal protection.
What Types of Customisation Options are Available with Best Term Insurance Plans?
While life insurance plans are generally considered to be a standardised product, there are several ways in which you can customise them. While it helps to better align with your individual needs and preferences, you also convert it into your best term insurance plan. Here are some of the customisation options that you can consider:
- Coverage Amount
One of the most fundamental customisation options is determining the coverage amount. This amount should be sufficient to replace your income, pay off debts, cover basic expenses, and support your dependents in your absence. Assessing your financial obligations and future needs is crucial in determining the appropriate coverage amount.
- Policy Term
Selecting from the best term insurance plans can offer you flexibility in terms of the coverage period. You can select a term that aligns with your financial goals and obligations. For instance, if you have young children, you may opt for a policy that provides coverage until they reach adulthood or until your loan is paid off.
The rider typically activates after a specified waiting period and can cover disabilities caused by accidents or certain illnesses, depending on the policy terms. By removing the burden of premium payments, it allows you to focus on recovery without worrying about losing your life insurance coverage.
- Rider Benefits
Riders are optional provisions or add-ons that policyholders can include in their insurance policies to modify or enhance the coverage provided by the base policy. These riders offer policyholders the flexibility to customise their insurance coverage to suit their individual needs and circumstances better. Some of the common riders to secure one of the best term insurance plans are:
- Accelerated Death Benefit Rider
Accelerated death benefit rider provides you with access to a portion of the death benefit if you are diagnosed with a terminal illness. It helps provide income to the beneficiaries during the hard times. By receiving these funds in advance, the insured can also ease the financial burden on their beneficiaries. This further helps ensure that their loved ones are not left struggling with immediate expenses.
- Waiver of Premium Rider
As the name suggests, this rider waives premiums in the unfortunate case of your inability to work under specific circumstances. This rider waives premium payments if you are disabled due to an accident and are unable to earn.
- Child Term Rider
Child term rider is beneficial for parents who are worried about the future of their kids. It provides coverage for your children, typically until they reach a certain age. Money from this rider can be used to support your child’s education in your absence.
- Accidental Death Benefit Rider
The primary purpose of the accidental death benefit rider is to provide an additional payout on top of the base death benefit if the insured passes away due to an accident covered by the policy.
- Convertibility
Some of the best term insurance plans offer the option to convert to a permanent life insurance policy without undergoing a medical exam or providing proof of insurability. This can be beneficial if your situations change and you need lifelong coverage.
- Medical Underwriting
While term insurance plans typically require a medical exam, some insurers offer accelerated underwriting programs that use technology and data analysis to expedite the process. This can be beneficial for individuals in good health who seek quick coverage approval.
Are you Covered with the Best Term Insurance Plan?
Term insurance plans can indeed be customised to fit your unique needs. It can be done by adjusting coverage amounts and policy terms, adding riders, exploring convertibility options, and considering different underwriting methods. Before purchasing the best term insurance plan, it is essential to assess things like financial situation, future obligations, and long-term goals. However, to ensure that the coverage you select adequately protects your loved ones in case of misfortunes, get insured by a reliable insurance provider.
Here, one of the most popular insurance providers, Tata AIA, offers one of the best term insurance plans. You can choose a plan that provides peace of mind and financial security for you and your family. If you dream of securing your and your family’s future, then get in touch with Tata AIA now!
